WALTHAM, Mass., Oct. 26, 2011 /PRNewswire/ -- Alere Inc. (NYSE: ALR), a global leader in enabling individuals to take charge of their health at home through the merger of rapid diagnostics and health management, today announced its financial results for the quarter ended September 30, 2011.
Financial results for the third quarter of 2011:
- Net revenue of $585.8 million for the third quarter of 2011, compared to $538.7 million for the third quarter of 2010.
- Product and services revenues from our Professional Diagnostics segment were $426.3 million in the third quarter of 2011, compared to $359.5 million in the third quarter of 2010. Recent professional diagnostics acquisitions contributed $19.4 million of incremental net revenue compared to the third quarter of 2010.
- North American influenza sales increased to $16.0 million for the third quarter of 2011, from $7.0 million for the third quarter of 2010.
- Excluding the impact of the change in North American influenza revenues, currency adjusted organic growth in our Professional Diagnostics segment was 8.7%.
- Adjusted cash-basis gross margins were 54.7% for the third quarter of 2011, compared to 55.9% for the third quarter of 2010 and 56.2% in the second quarter of 2011. Adjusted cash-basis gross margins from products and services in our Professional Diagnostics segment were 58.9% in the third quarter of 2011, compared to 59.9% in the third quarter of 2010 and 58.6% in the second quarter of 2011.
- Product and services revenues from our Health Management segment were $129.9 million in the third quarter of 2011, compared to $152.9 million in the third quarter of 2010 and $135.6 million in the second quarter of 2011. The decline in revenues from the second quarter of 2011 was driven by the continuing impact of reduced state government spending levels which affected our wellness business and a change in billing guidance from the Centers for Medicare and Medicaid Services which affected our Alere Home Monitoring business.
- Adjusted cash-basis gross margins from our Health Management segment were 46.2% in the third quarter of 2011, compared to 51.8% in the third quarter of 2010 and 48.4% in the second quarter of 2011.
- Included in adjusted cash-basis interest and other income (expense), net for the third quarter of 2011 was income of $11.3 million associated with an amendment of our license agreement with Quidel and $5.0 million associated with the settlement of a dispute over past royalty obligations, offset by unrealized foreign exchange losses of $6.7 million.
- GAAP net income of $234.2 million attributable to common stockholders of Alere Inc., and respective net income per diluted common share of $2.48, for the third quarter of 2011, compared to GAAP net loss of $2.8 million attributable to common stockholders of Alere Inc., and respective net loss per common share of $0.03, for the third quarter of 2010.
- Adjusted cash-basis net income per diluted common share of $0.67 for the third quarter of 2011, compared to adjusted cash-basis net income per diluted common share from continuing operations of $0.59, for the third quarter of 2010.
- Adjusted free cash flow for the quarter was $36.9 million, reflecting adjusted cash flow from operations of $64.0 million, offset by capital expenditures of $27.1 million.
The Company’s GAAP results for the third quarter of 2011 include amortization of $70.3 million, $3.4 million of restructuring charges, $4.3 million of stock-based compensation expense, $2.9 million of acquisition-related costs recorded in accordance with ASC 805, Business Combinations, $1.3 million of interest expense associated with fees paid for modification of certain debt agreements, a $0.6 million write-down in the carrying value of a facility and a net realized foreign currency loss of $18.1 million associated with a cash balance established in connection with the Axis-Shield plc tender offer, offset by $3.8 million of income recorded for fair value adjustments to acquisition-related contingent consideration obligations and a $288.9 million gain in connection with the formation of our joint venture with Procter & Gamble in May 2007. The Company’s GAAP results for the third quarter of 2010 include amortization of $74.4 million, $7.3 million of stock-based compensation expense, a $1.3 million charge associated with the write-up to fair market value of inventory acquired in connection with acquisitions, $0.9 million of acquisition-related costs recorded in accordance with ASC 805, Business Combinations and $4.6 million of expense recorded for fair value adjustments to acquisition-related contingent consideration obligations, offset by $1.6 million net restructuring cost recovery and a $0.7 million, net of tax, allocation of certain of the aforementioned charges to non-controlling stockholders. These amounts, net of tax, have been excluded from the adjusted cash-basis net income per diluted common share attributable to Alere Inc. for the respective quarters.
A detailed reconciliation of the Company’s adjusted cash-basis net income, which is a non-GAAP financial measure, to net income under GAAP, as well as a discussion regarding this non-GAAP financial measure, is included in the schedules to this press release.
The Company will host a conference call beginning at 8:30 a.m. (Eastern Time) today, October 26, 2011, to discuss these results, as well as other corporate matters. During the conference call, the Company may answer questions concerning business and financial developments and trends and other business and financial matters. The Company’s responses to these questions, as well as other matters discussed during the conference call, may contain or constitute information that has not been previously disclosed.
The conference call may be accessed by dialing (800) 860-2442 (domestic) or (412) 858-4600 (international) and asking for Alere Inc. A webcast of the call can also be accessed via the Alere website at http://www.alere.com/investors, or directly through the following link: http://www.videonewswire.com/event.asp?id=83174.
A replay of the call will be available approximately four hours after the conclusion of the call and will remain available for a period of seven days following the call. The replay may be accessed by dialing (877) 344-7529 (domestic) or (412) 317-0088 (international) and entering replay code 10002372. The replay will also be available via online webcast at http://www.videonewswire.com/event.asp?id=83174 or via the Alere website at www.alere.com for a period of 60 days following the call.
Additionally, reconciliations to non-GAAP financial measures not included in this press release that may be discussed during the call will also be available at the Alere website (http://www.alere.com/investors) under the Earnings Calls and Releases section shortly before the conference call begins and will continue to be available on this website.
